U.S. inflation prints below market expectations. NASDAQ and S&P close at record highs. Yet, the FEd's SEP report shows how concerned they are about inflation. Who is right, and who is wrong? The Greed train leads the way.

The markets are not smart, they just have more money than you and the inside track.  But, it would be prudent to at least understand the machinations of how markets rise on expectations that Central Banks will maintain liquidity, so speculation, like AI and BITCOIN can save the world.  Just being sardonic.  U.S. May Consumer Price Index came in under market expectation of 3.4% at 3.3%, still 1.3% from the Federal reserve inflation target at 2%.  Which, as an ad hoc measure, is about as mathematically accurate as a cherry picking conspiracy theorist.  Yet, statistical measures based of economic trends feed into greed, thus the deniers of inflation, which were Central Banks, kinda know the truth. 

The SEP or Summary of Economic Projections (full report can be read here) for June 12th 2024, that was released at the same time as the CPI, paints a picture that the Fed is very concerned about things of the inflation situation, utilizing the term "uncertainty", which is thrown about a lot these days, but not so much when expectations that the Fed will cut rates.  As we are all used to over Two decades of cheap money, and low interest rates, but, it appears at this point seems like they won't be cutting rates anytime soon.  So, why does the market read it like they will?  A good question indeed. 

Probably a mix of human folly, corruption and expectations that stock market rises makes you feel better (or at least your retirement funds).  Remember when the death rates of COVID went up with the stock market.  We ride high on hope, in all of its illusionary expectations.  Until it ends.

The other issue is the $Billions pouring into AI and Crypto, both extraordinary speculative, yet heavily invested into by thousands of Venture Capitalists, Hedge Funds and 'tech' funding Banks, so that AI will write the best emails, despite its over use of commas and rambling dialogue (like an English teacher high of caffeine).  And Crypto is the money that we will use on Mars, when Musk helps us colonize it. 

Above chart is NASDAQ futures with the S&P 500 (separate pane).

Both the NASDAQ and S&P are trading in no man's land, at all time highs, there for there are no supports or price resistance.

Last support/s 

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